What is the difference between a fixed rate mortgage and adjustable rate mortgage?
- Asked By: MoneyTactics
- Category: Adjustable Rate Mortgage
What is the difference between a fixed rate mortgage and adjustable rate mortgage?
T E
Posted 3 months ago
fixed rate mortgage is mortgage loan amount with a fixed interest rate over a period of time, say 3 or 5 yrs
adjustable rate mortgage is mortgagae loan amount with its interest rate that changes when the bank rate changes
Melissa White Realty
Posted 3 months ago
With a fixed rate mortgage, the interest rate never varies and your monthly payment stays the same for the life of the loan (excluding increases due to rises in real estate taxes). With an adjustable rate mortgage (or ARM), you usually start out with a lower interest rate than on a fixed rate mortgage, but the interest rates go up (or down) after a period of time and consequently affect the amount of your monthly payment.
stevefwb
Posted 3 months ago
fixed is set permanently in the beginning of the loan. now it is about 5 %.
adjustable means the rate can and will change. normally starts low 3% and will go up to 18% if the banks rate goes up.
if you know you are going to sell in 2 yrs then adj. MIGHT be something to consider.
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What is the difference between a fixed rate mortgage and adjustable rate mortgage?
- Can I itemize my mortgage interest paid in my taxes?
- Do mortgage lenders pull credit reports multiple times during the refinance process?
- how do they calculate the mortgage payment with interest?
- How long after a foreclosure is there an auction?
- If mortgage tax & interest forms are only in my name but multiple owners can they file my forms under thir nam?
T E
Posted 3 months ago
fixed rate mortgage is mortgage loan amount with a fixed interest rate over a period of time, say 3 or 5 yrs
adjustable rate mortgage is mortgagae loan amount with its interest rate that changes when the bank rate changes
Melissa White Realty
Posted 3 months ago
With a fixed rate mortgage, the interest rate never varies and your monthly payment stays the same for the life of the loan (excluding increases due to rises in real estate taxes). With an adjustable rate mortgage (or ARM), you usually start out with a lower interest rate than on a fixed rate mortgage, but the interest rates go up (or down) after a period of time and consequently affect the amount of your monthly payment.
stevefwb
Posted 3 months ago
fixed is set permanently in the beginning of the loan. now it is about 5 %.
adjustable means the rate can and will change. normally starts low 3% and will go up to 18% if the banks rate goes up.
if you know you are going to sell in 2 yrs then adj. MIGHT be something to consider.
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Billy Cunningham
Posted 3 months ago
at 5.125 % you would be a FOOL to get an adjustable rate mortgage.
Get the FIXED rate mortgage.